ILNK:CURRENT POSITION/FUTURE FUNDING (1
by: Glotech (49/M) 5/3/00 1:34 pm
Msg: 27966 of 28009
Here's the link to ILNK 10K report for fiscal year ending 1999..
nasdaq.com
Refer to page 20 for information on current and future funding requirements. I have extracted the relevant information for you? and present it as follows:
CURRENT POSITION/FUTURE REQUIREMENTS
During 2000, the Company plans to use available cash to fund the development and marketing of I-Link products and services. The Company anticipates that revenues from all sources of continuing operations will grow in 2000 and will increasingly contribute to meeting the cash requirements of the Company. The Company anticipates increased cash flow in 2000 primarily from the following sources:
- During 1999 and the first quarter of 2000 the Company deployed its Communication Engines in an additional four metropolitan areas in the United States (San Francisco, New York, Washington D.C. and Atlanta) and anticipates continued deployments during the remainder of 2000 to continue the build out of the Company's IP Telephony network. The anticipated effect of this expansion is additional revenues and increased profit margins for telecommunications services in the future.
- Anticipated revenues from its Gatelink product offering commencing in the second quarter of 2000.
- Anticipated revenues from marketing of its Indavo (formerly referred to as C4) product which sales are anticipated to begin in the second quarter of 2000.
- The affiliation with Big Planet effective February 15, 2000 is anticipated to have a positive overall financial impact in the long-term to the Company by increasing revenues, reducing expenses and increasing profit margins.
- Increased revenues from technology licensing and development, which revenues in the first quarter of 2000 approximated the total revenues in 1999.
- During the first quarter of 2000, the Company has received approximately $3,000,000 from exercises of common stock options and warrants. Depending primarily on the common stock price in the remainder of 2000, the Company could receive more cash from continued exercises.
continued.................
ILNK:CURRENT POSITION/FUTURE FUNDING (2
by: Glotech (49/M) 5/3/00 1:36 pm
Msg: 27967 of 28009
The Company's business plan of continued market penetration and deployment of I-Link products and services will require financial resources at increasingly higher levels than those experienced in 1999. In order to provide for capital expenditure and working capital needs, the Company entered into the following three agreements in 2000:
- On April 13, 2000, Winter Harbor, LLC, agreed to provide I-Link with a line of credit of up to an aggregate amount of $15,000,000. This commitment expires on the earlier of April 12, 2001 or the date I-Link has received net cash proceeds of not less than $15,000,000 pursuant to one or more additional financings or technology sales, as well as licensing or consulting agreements outside the normal and historical course of business. The $15,000,000 aggregate commitment will be reduced by the $1,300,000 (plus accrued interest at 8% per annum) advanced to I-Link in the first quarter of 2000 by Winter Harbor, interest accruing on any other advances under such commitment, as well as any net cash proceeds received by I-Link in the future from additional financings or technology sales as well as licensing or consulting agreements outside the normal and historical course of business. Any amounts outstanding under the loan will be due and payable no later than April 12, 2001. As part of this agreement, I-Link has agreed to use its best effort to consummate as soon as possible one or more additional financings, technology sales or licensing or consulting agreements and to repay amounts outstanding under the loan with any net cash proceeds received by it from any such transaction. The loan from Winter Harbor will bear interest at 12.5% per annum, be secured by substantially all of the assets of I-Link and may be converted into common stock of I-Link, at the option of Winter Harbor, at a fixed conversion price of $8.625 per share. If I-Link has not terminated the commitment and repaid all amounts outstanding thereunder by May 15, 2000, it will issue to Winter Harbor up to 750,000 warrants to purchase I-Link common stock, with the actual number of warrants issued to be equal to the product of 750,000 times a fraction, the numerator of which equals the sum of the outstanding commitment and unpaid balance under the loan on such date and the denominator of which is 15,000,000. The warrants will be exercisable at a fixed strike price of $8.625 per share and expire in five years.
- On February 25, 2000, the Company obtained leasing arrangements for certain network equipment up to $5,000,000
dollars.
- The due date of the Company's existing obligation to Winter Harbor in the amount of $7,768,000 and accrued interest $1,345,801 as of December 31, 1999, which was due April 15, 2000, was extended to April 15, 2001.
While the Company believes that the aforementioned sources of funds will be sufficient to fund operations in 2000, the Company anticipates that additional funds will be necessary from public or private financing markets to successfully integrate and finance the planned expansion of the business communications services, product development and manufacturing, and to discharge the financial obligations of the Company. The availability of such capital sources will depend on prevailing market conditions, interest rates, and financial position and results of operations of the Company. There can be no assurance that such financing will be available, that the Company will receive any additional proceeds from the exercise of outstanding options and warrants or that the Company will not be required to arrange for additional debt, equity or other type of financing.
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Glotech |
